NAVER
(035420 KS ) Commerce and content deserve attention
4Q17 review: Above-consensus revenue, below-consensus OP, resuming Internet share repurchasing NAVER’s consolidated revenue beat the consensus, but operating profit missed. Results Comment January 26, 2018 Positives: The business platform segment, which includes the search ad business (NAVER’s traditional area of strength), was stronger than expected, with revenue grow ing 17% YoY on the successful stabilization of the shopping search ad service (launched in November 2016), the introduction of image search, and an upgraded product recommendation feature. IT platform revenue surged 70% YoY, supported by (Maintain) Buy the growing use of NAVER Pay.
Target Price (12M, W) 1,200,000 Negatives: Cost increases had a notable impact. For the parent company, expenses related to agents and partners increased more than expected. We believe news content-related fees increased starting in 4Q17, with the introduction of a news Share Price (01/25/18, W) 913,000 chann el feature on the NAVER mobile app main page. The sharp QoQ increase in operating expenses in the LINE/other platform segment weighed on consolidated Expected Return 31% operating profit.
More favorable shareholder policy: NAVER announced a 2017 dividend per share of OP (17F, Wbn) 1,179 W1,446—higher than our previous estimate of W1,200—and a share buyback plan Consensus OP (17F, Wbn) 1,208 worth W119bn, resuming share repurchasing after a one-year hiatus.
EPS Growth (17F, %) 3.1 Internet platform business strategy focused on commerce and content Market EPS Growth (17F, %) 45.7 In their effort to secure user traffic and develop sustainable growth models, global P/E (17F, x) 37.1 internet companies have adopted a strategic focus on commerce and content. Market P/E (17F, x) 10.4 Commerce: Advertising is the key revenue source for the internet platform business. KOSPI 2,562.23 However, in the domestic ad market, close to 40% of ad expendi tures in 2017 went toward Market Cap (Wbn) 30,095 online advertising, and growth is slowing. In contrast, online still accounts for less than 20% Shares Outstanding (mn) 33 of the domestic retail market, implying strong growth potential. NAVER is enhancing its Free Float (%) 78.3 commerce business; the company plans to rebran d Store Farm (platform for small businesses) as Smart Store and introduce additional features, and recently improved Foreign Ownership (%) 59.5 features (i.e., search nearby, booking) to the already-upgraded NAVER Map mobile app. In Beta (12M) 0.66 addition, voice-activated commerce is being introduced to AI speakers, and LINE is also 52-Week Low 720,000 expanding its shopping and fintech businesses through LINE Pay. 52-Week High 960,000 Content: Internet firms traditionally generate revenue not from users directly, but by (%) 1M 6M 12M charging advertisers at rates based on their user bases. Now, though, content is coming Absolute 5.9 9.1 19.7 into greater focus as a way to charge users directly through subscription fees. Key Relative 0.9 3.9 -3.5 examples include Netflix (video on-demand streaming service; NFLX NASDAQ, CP: US$269.70) and LOEN Entertainment (online music service provider; 016170 KQ, CP: 130 NAVER KOSPI W113,100). NAVER has decided to make equity investments in global content platforms, 120 such as NAVER Webtoon and WAV Media. 110
100 Maintain Buy and TP of W1,200,000
90 We remain optimistic on NAVER, given notable revenue growth at its core business
80 plat form segment. We expect NAVER to gain further growth momentum by enhancing 1.17 5.17 9.17 1.18 its commerce and content services. We maintain our Buy call and target price of W1,200,000. Mirae Asset Daewoo Co., Ltd.
[ Internet/Game/Advertising ] FY (12) 12/14 12/15 12/16 12/17F 12/18F 12/19F Revenue (Wbn) 2,758 3,254 4,023 4,679 5,461 6,297 Jee -hyun Moon +822 -3774 -1640 OP (Wbn) 758 830 1,102 1,179 1,431 1,747 [email protected] OP margin (%) 27.5 25.5 27.4 25.2 26.2 27.7
NP (Wbn) 454 519 749 773 996 1,212 EPS (W) 13,787 15,737 22,732 23,436 30,204 36,768 ROE (%) 27.8 26.5 26.2 18.5 19.0 19.3
P/E (x) 51.6 41.8 34.1 37.1 30.2 24.8 P/B (x) 8.7 6.8 5.2 4.8 4.4 3.7 Dividend yield (%) 0.1 0.2 0.1 0.2 0.2 0.2 Note: All figures are based on consolidated K-IFRS; NP refers to net profit attributable to controlling interests Source: Company data, Mirae Asset Daewoo Research estimates
January 26, 2018 NAVER
Earnings forecasts
Table 1. 4Q17 review (Wbn, %) 4Q17P Growth
4Q16 3Q17 Mirae Asset Preliminary Consensus YoY QoQ Daewoo Revenue 1,085 1,201 1,266 1,279 1,249 16.7 5.4 Operating profit 290 312 291 333 320 0.3 -6.8 OP margin (%) 26.7 26.0 23.0 26.1 25.7 Net profit 183 216 172 229 231 -6.2 -20.3 Note: All figures are based on consolidated K-IFRS; net profit is attributable to controlling and non-controlling interests Source: Company data, FnGuide, Mirae Asset Daewoo Research estimates
Table 2. Quarterly and annual earnings and forecasts (Wbn, %) 1Q17 2Q17 3Q17 4Q17P 1Q18F 2Q18F 3Q18F 4Q18F 2016 2017P 2018F Revenue 1,082 1,130 1,201 1,266 1,250 1,326 1,392 1,494 4,023 4,679 5,461 Ads 100 118 114 130 109 131 126 142 400 461 507 Business platform 510 521 549 574 581 604 631 660 1,866 2,153 2,476 IT platform 43 49 59 66 74 84 96 106 121 218 359 Content services 24 24 27 27 27 27 28 29 103 102 112 LINE and other platforms 406 418 453 469 459 480 511 556 1,534 1,745 2,006 Operating profit 291 285 312 291 315 338 387 390 1,102 1,179 1,431 OP margin 26.9 25.2 26.0 23.0 25.2 25.5 27.8 26.1 27.4 25.2 26.2 Net profit 211 171 216 172 222 240 265 266 759 770 993 Net margin 19.5 15.2 18.0 13.6 17.8 18.1 19.1 17.8 18.9 16.5 18.2 YoY Revenue 15.5 14.4 18.5 16.7 15.5 17.4 15.9 18.0 23.6 16.3 16.7 Ads 22.3 21.8 16.1 5.4 9.0 11.0 10.0 9.9 15.4 10.0 Business platform 13.3 12.6 18.7 16.9 14.0 16.0 15.0 15.0 15.4 15.0 IT platform 92.0 75.8 90.3 70.3 70.0 70.0 63.0 59.8 80.7 65.0 Content services -23.7 -10.9 18.7 20.0 16.0 11.0 5.0 8.8 -1.6 10.0 LINE and other platforms 15.1 12.0 13.4 14.5 13.0 15.0 13.0 18.7 13.8 15.0 Operating profit 13.2 4.6 10.6 0.3 8.4 18.5 24.0 34.1 32.7 7.0 21.3 Net profit 27.8 -19.6 9.0 -6.2 5.2 39.8 22.9 54.8 46.8 1.5 28.9 Notes: All figures are based on consolidated K-IFRS; revenue was reclassified into five segments: ads, business platform, IT platform, content services, and LINE and other platforms; new classification only applies from 2017; ads include general and shopping display ads and video ads; business platform includes general and shopping search ads; IT platform includes NAVER Pay, IT services, and cloud services; content services include music, webtoon, and V Live; LINE and other platforms include LINE, Camp Mobile, and Snow; net profit is attributable to controlling and non-controlling interests Source: Company data, Mirae Asset Daewoo Research estimates
Table 3. Earnings forecast revisions (Wbn, W, %) Previous Revised % chg. Notes 18F 19F 18F 19F 18F 19F - Revised business platform and IT platform upwards ; Revenue 5,455 6,270 5,461 6,297 0.1 0.4 revised ad estimates down wards - Revised agency and partner expense estimates Operating profit 1,548 1,833 1,431 1,747 -7.6 -4.7 upwards; revised LINE and other platforms expense estimates upwards Net profit 1,097 1,292 993 1,208 -9.5 -6.5 - Revised corporate tax rate estimates upwards EPS (W) 33,072 38,950 30,204 36,768 -8.7 -5.6
OP margin 28.4 29.2 26.2 27.7
Net margin 20.1 20.6 18.2 19.2
Notes: Net profit is attributable to controlling and non-controlling interests; EPS is attributable to controlling interests Source: Mirae Asset Daewoo Research estimates
Mirae Asset Daewoo Research 2 January 26, 2018 NAVER
NAVER’s business strategy
Figure 1. Internet platform business strategy focused on commerce and content
Strategy인터넷 on플랫폼 internet 사업 platform 전략
Online ‰‰‰ offline additional Indirect charge(Ad) ‰ 온라인 → 오프라인 추가 침투 간접 과금(광고) → 직접 과금(구독)‰‰ 확대 penetration direct charge(subscription) expansion
Improvement커머스 of commerce 강화 Investment콘텐츠 투자 in contents
Source: Mirae Asset Daewoo Research
Figure 2. NAVER is enhancing its commerce business: Rebranding Store Farm as Smart Store and introducing additional features to NAVER Map mobile app.
Notes: On left, search function on Smart Store (platform for small business); on right, search nearby on NAVER Map mobile app Source: Company data, Mirae Asset Daewoo Research
Figure 3. NAVER has decided to make equity investments in global content platforms (NAVER Webtoon and WAV Media)
Notes: On left, NAVER and LINE Webtoon (NAVER has invested W60bn in these platforms); on right, WAV Media in North America (NAVER has invested W53.4bn) Source: Company Data, Mirae Asset Daewoo Research
Mirae Asset Daewoo Research 3 January 26, 2018 NAVER
Valuation
Table 4. 12-month target price calculation (Wbn, x, W) Valuation Notes
Operating value (1) 35,605
12MF NP attributable to controlling interests Multiple
Consolidated 996 35.8 35,605 2018F P/E (Alphabet, Baidu, Amazon) average Investment asset value (2) 1,354
Available-for-sale financial assets 1,052 As of end-3Q17; fair value; including unlisted shares
Investments in associates 303 As of end-3Q17; book value
Total asset value (1+2=3) 36,960
Net debt (4) -2,946 As of end-3Q17; consolidated Net asset value (3-4) 39,906
Share count (‘000 shares) 32,963 Total shares outstanding, including treasury shares Target price 1,200,000
Note: Based on end-3Q17 figures, as audited report as of end-4Q17 has yet to be submitted Source: Bloomberg, Mirae Asset Daewoo Research estimates
Table 5. Earnings and valuation comparison of major global internet companies (Wbn, x, % )
Market Revenue Operating profit Net profit P/E P/B ROE Company cap 17F 18F 17F 18F 17F 18F 17F 18F 17F 18F 17F 18F NAVER 30,095 4,679 5,461 1,179 1,431 770 993 37.1 30.2 4.8 4.4 18.5 19.0 Kakao 9,168 1,961 2,244 177 236 140 157 75.4 66.2 2.3 2.2 3.3 3.4 Interpark 323 485 528 28 31 16 18 20.8 18.8 1.8 1.7 8.7 9.4 Alphabet 860,562 95,673 113,260 40,135 47,876 32,366 39,046 27.3 22.8 5.0 4.2 15.6 16.5 Amazon 693,964 190,711 245,959 3,751 7,083 6,060 8,619 116.0 84.0 24.9 18.6 9.8 14.4 Facebook 577,572 42,957 57,415 20,696 24,672 20,996 24,838 26.6 23.5 7.1 5.9 24.3 23.4 Netflix 119,955 16,776 20,579 1,693 2,728 1,527 2,485 84.5 52.3 23.0 16.3 26.2 28.3 eBay 44,127 10,292 11,039 3,026 3,235 2,331 2,481 19.9 18.0 4.0 3.5 19.4 18.4 Twitter 18,448 852 1,371 -886 -1,002 -809 -797 - - 6.3 9.1 -33.1 -33.1 Snap 17,628 2,578 2,760 484 491 300 344 54.6 47.1 3.3 3.2 6.1 6.2 Shopify 12,697 704 1,019 -2 25 6 27 2,346.5 417.0 11.9 12.1 0.8 2.6 MercadoLibre 16,658 1,467 2,108 154 164 128 137 138.3 121.6 36.3 30.0 26.2 24.2 Yahoo Japan 29,735 8,779 9,445 1,883 2,107 1,293 1,428 23.0 20.8 3.0 2.7 13.5 13.6 Rakuten 13,639 9,014 10,014 1,444 1,293 835 747 15.5 16.8 1.9 1.8 12.8 10.7 LINE 11,427 1,683 1,903 279 285 139 155 72.4 63.4 6.0 5.5 9.2 9.6 Tencent 593,304 40,194 56,113 13,989 17,166 10,960 14,307 54.0 41.4 15.0 11.1 30.9 29.5 Alibaba 531,265 40,776 55,775 12,255 17,294 14,556 19,121 36.3 28.1 8.5 6.7 19.9 22.0 Baidu 94,653 14,201 17,466 2,561 3,240 3,288 3,521 28.9 27.0 5.0 4.2 17.1 15.6 JD.com 70,825 60,604 78,873 55 695 828 1,435 86.4 54.0 9.7 8.5 1.7 9.4 Weibo 29,824 1,213 1,802 428 709 408 662 75.6 47.0 24.6 16.2 36.9 40.3 Momo 6,066 1,404 1,824 375 482 378 478 17.3 13.7 6.0 4.2 39.8 34.4 Average 48.4 37.5 7.0 6.0 17.0 17.5 Note: Data for domestic companies are based on Mirae Asset Daewoo estimates; data for overseas companies are based on consensus; excluded outliers when calculating average Source: Bloomberg, Mirae Asset Daewoo Research estimates
Mirae Asset Daewoo Research 4 January 26, 2018 NAVER
NAVER (035420 KS/Buy/TP: W1,200,000)
Comprehensive Income Statement (Summarized) Statement of Financial Condition (Summarized) (Wbn) 12/16 12/17F 12/18F 12/19F (Wbn) 12/16 12/17F 12/18F 12/19F Revenue 4,023 4,679 5,461 6,297 Current Assets 4,200 5,338 6,645 8,154 Cost of Sales 0 0 0 0 Cash and Cash Equivalents 1,726 2,452 3,298 4,293 Gross Profit 4,023 4,679 5,461 6,297 AR & Other Receivables 694 810 924 1,065 SG&A Expenses 2,921 3,499 4,030 4,550 Inventories 10 12 14 16 Operating Profit (Adj) 1,102 1,179 1,431 1,747 Other Current Assets 1,770 2,064 2,409 2,780 Operating Profit 1,102 1,179 1,431 1,747 Non-Current Assets 2,171 2,529 2,536 2,575 Non-Operating Profit 30 17 29 30 Investments in Associates 182 213 248 286 Net Financial Income 30 34 44 55 Property, Plant and Equipment 863 1,018 870 743 Net Gain from Inv in Associates -9 -1 0 0 Intangible Assets 112 239 239 239 Pretax Profit 1,132 1,196 1,460 1,777 Total Assets 6,371 7,867 9,181 10,729 Income Tax 361 423 467 569 Current Liabilities 1,804 2,065 2,373 2,701 Profit from Continuing Operations 771 773 993 1,208 AP & Other Payables 425 496 579 667 Profit from Discontinued Operations -12 -3 0 0 Short-Term Financial Liabilities 227 225 225 225 Net Profit 759 770 993 1,208 Other Current Liabilities 1,152 1,344 1,569 1,809 Controlling Interests 749 773 996 1,212 Non-Current Liabilities 437 486 542 602 Non-Controlling Interests 10 -2 -3 -4 Long-Term Financial Liabilities 150 151 151 151 Total Comprehensive Profit 724 725 993 1,208 Other Non-Current Liabilities 287 335 391 451 Controlling Interests 733 726 994 1,209 Total Liabilities 2,241 2,551 2,915 3,304 Non-Controlling Interests -9 -1 -1 -1 Controlling Interests 3,595 4,753 5,706 6,868 EBITDA 1,265 1,369 1,580 1,874 Capital Stock 16 16 16 16 FCF (Free Cash Flow) 1,010 749 1,369 1,559 Capital Surplus 1,217 1,452 1,452 1,452 EBITDA Margin (%) 31.4 29.3 28.9 29.8 Retained Earnings 3,810 4,550 5,503 6,666 Operating Profit Margin (%) 27.4 25.2 26.2 27.7 Non-Controlling Interests 535 563 560 557 Net Profit Margin (%) 18.6 16.5 18.2 19.2 Stockholders' Equity 4,130 5,316 6,266 7,425
Cash Flows (Summarized) Forecasts/Valuations (Summarized) (Wbn) 12/16 12/17F 12/18F 12/19F 12/16 12/17F 12/18F 12/19F Cash Flows from Op Activities 1,164 1,055 1,369 1,559 P/E (x) 34.1 37.1 30.2 24.8 Net Profit 759 770 993 1,208 P/CF (x) 18.5 21.2 19.3 16.3 Non-Cash Income and Expense 624 583 565 633 P/B (x) 5.2 4.8 4.4 3.7 Depreciation 146 174 149 127 EV/EBITDA (x) 18.2 18.4 16.1 12.9 Amortization 17 15 0 0 EPS (W) 22,732 23,436 30,204 36,768 Others 461 394 416 506 CFPS (W) 41,966 41,043 47,250 55,874 Chg in Working Capital 88 96 228 224 BPS (W) 150,192 179,739 208,654 243,925 Chg in AR & Other Receivables -56 -721 -93 -99 DPS (W) 1,131 1,446 1,680 2,050 Chg in Inventories 0 18 -2 -2 Payout ratio (%) 4.3 5.5 5.0 5.0 Chg in AP & Other Payables 11 32 0 0 Dividend Yield (%) 0.1 0.2 0.2 0.2 Income Tax Paid -339 -436 -467 -569 Revenue Growth (%) 23.6 16.3 16.7 15.3 Cash Flows from Inv Activities -942 -878 -445 -476 EBITDA Growth (%) 28.3 8.2 15.4 18.6 Chg in PP&E -97 -303 0 0 Operating Profit Growth (%) 32.8 7.0 21.4 22.1 Chg in Intangible Assets -21 -20 0 0 EPS Growth (%) 44.4 3.1 28.9 21.7 Chg in Financial Assets -662 -381 -445 -476 Accounts Receivable Turnover (x) 9.1 9.1 9.1 9.0 Others -162 -174 0 0 Inventory Turnover (x) 311.2 417.4 417.5 415.1 Cash Flows from Fin Activities 698 483 -42 -49 Accounts Payable Turnover (x) 0.0 0.0 0.0 0.0 Chg in Financial Liabilities -290 -1 0 0 ROA (%) 14.1 10.8 11.6 12.1 Chg in Equity 1,084 235 0 0 ROE (%) 26.2 18.5 19.0 19.3 Dividends Paid -32 -33 -42 -49 ROIC (%) 169.2 177.0 285.5 2,599.8 Others -64 282 0 0 Liability to Equity Ratio (%) 54.3 48.0 46.5 44.5 Increase (Decrease) in Cash 913 726 846 996 Current Ratio (%) 232.8 258.5 280.1 301.8 Beginning Balance 813 1,726 2,452 3,297 Net Debt to Equity Ratio (%) -73.1 -75.7 -82.9 -88.0 Ending Balance 1,726 2,452 3,297 4,293 Interest Coverage Ratio (x) 181.5 3,368.2 4,091.6 4,995.3 Source: Company data, Mirae Asset Daewoo Research estimates
Mirae Asset Daewoo Research 5 January 26, 2018 NAVER
APPENDIX 1
Important Disclosures & Disclaimers 2-Year Rating and Target Price History
Company (Code) Date Rating Target Price (W) NAVER NAVER (035420) 10/26/2017 Buy 1,200,000 1,500,000 04/04/2017 Buy 1,160,000 01/02/2017 No Coverage 1,000,000 08/30/2016 Buy 1,050,000 04/28/2016 Buy 900,000 07/30/2015 Buy 820,000 500,000
0 Jan 16 Jan 17 Jan 18
Stock Ratings Industry Ratings Buy : Relative performance of 20% or greater Overweight : Fundamentals are favorable or improving Trading Buy : Relative performance of 10% or greater, but with volatility Neutral : Fundamentals are steady without any material changes Hold : Relative performance of -10% and 10% Underweight : Fundamentals are unfavorable or worsening Sell : Relative performance of -10% Ratings and Target Price History (Share price (─), Target price (▬), Not covered ( ■), Buy (▲), Trading Buy (■), Hold (●), Sell ( ◆)) * Our investment rating is a guide to the relative return of the stock versus the market over the next 12 months. * Although it is not part of the official ratings at Mirae Asset Daewoo Co., Ltd., we may call a trading opportunity in case there is a technical or short-term material development. * The target price was determined by the research analyst through valuation methods discussed in this report, in part based on the analyst’s estimate of future earnings. * The achievement of the target price may be impeded by risks related to the subject securities and companies, as well as general market and economic conditions.
Equity Ratings Distribution & Investment Banking Services Buy Trading Buy Hold Sell Equity Ratings Distribution 75.50% 16.00% 8.50% 0.00% Investment Banking Services 62.50% 33.33% 4.17% 0.00% * Based on recommendations in the last 12-months (as of December 31, 2017)
Disclosures As of the publication date, Mirae Asset Daewoo Co., Ltd. and/or its affiliates own 1% or more of NAVER`s shares outstanding.
Analyst Certification The research analysts who prepared this report (the “Analysts”) are registered with the Korea Financial Investment Association and are subject to Korean securities regulations. They are neither registered as research analysts in any other jurisdiction nor subject to the laws or regulations thereof. Each Analyst responsible for the preparation of this report certifies that (i) all views expressed in this report accurately reflect the personal views of the Analyst about any and all of the issuers and securities named in this report and (ii) no part of the compensation of the Analyst was, is, or will be directly or indirectly related to the specific recommendations or views contained in this report. Mirae Asset Daewoo Co., Ltd. (“Mirae Asset Daewoo”) policy prohibits its Analysts and members of their households from owning securities of any company in the Analyst’s area of coverage, and the Analysts do not serve as an officer, director or advisory board member of the subject companies. Except as otherwise specified herein, the Analysts have not received any compensation or any other benefits from the subject companies in the past 12 months and have not been promised the same in connection with this report. Like all employees of Mirae Asset Daewoo, the Analysts receive compensation that is determined by overall firm profitability, which includes revenues from, among other business units, the institutional equities, investment banking, proprietary trading and private client division. At the time of publication of this report, the Analysts do not know or have reason to know of any actual, material conflict of interest of the Analyst or Mirae Asset Daewoo except as otherwise stated herein.
Disclaimers This report was prepared by Mirae Asset Daewoo, a broker-dealer registered in the Republic of Korea and a member of the Korea Exchange. Information and opinions contained herein have been compiled in good faith and from sources believed to be reliable, but such information has not been independently verified and Mirae Asset Daewoo makes no guarantee, representation or warranty, express or implied, as to the fairness, accuracy, completeness or correctness of the information and opinions contained herein or of any translation into English from the Korean language. In case of an English translation of a report prepared in the Korean language, the original Korean language report may have been made available to investors in advance of this report. The intended recipients of this report are sophisticated institutional investors who have substantial knowledge of the local business environment, its common practices, laws and accounting principles and no person whose receipt or use of this report would violate any laws or regulations or subject Mirae Asset Daewoo or any of its affiliates to registration or licensing requirements in any jurisdiction shall receive or make any use hereof. This report is for general information purposes only and it is not and shall not be construed as an offer or a solicitation of an offer to effect transactions in any securities or other financial instruments. The report does not constitute investment advice to any person and such person shall not be treated as a client of Mirae Asset Daewoo by virtue of receiving this report. This report does not take into account the particular investment objectives, financial situations, or needs of individual clients. The report is not to be relied upon in substitution for the exercise of independent judgment. Information and
Mirae Asset Daewoo Research 6 January 26, 2018 NAVER
opinions contained herein are as of the date hereof and are subject to change without notice. The price and value of the investments referred to in this report and the income from them may depreciate or appreciate, and investors may incur losses on investments. Past performance is not a guide to future performance. Future returns are not guaranteed, and a loss of original capital may occur. Mirae Asset Daewoo, its affiliates and their directors, officers, employees and agents do not accept any liability for any loss arising out of the use hereof. Mirae Asset Daewoo may have issued other reports that are inconsistent with, and reach different conclusions from, the opinions presented in this report. The reports may reflect different assumptions, views and analytical methods of the analysts who prepared them. Mirae Asset Daewoo may make investment decisions that are inconsistent with the opinions and views expressed in this research report. Mirae Asset Daewoo, its affiliates and their directors, officers, employees and agents may have long or short positions in any of the subject securities at any time and may make a purchase or sale, or offer to make a purchase or sale, of any such securities or other financial instruments from time to time in the open market or otherwise, in each case either as principals or agents. Mirae Asset Daewoo and its affiliates may have had, or may be expecting to enter into, business relationships with the subject companies to provide investment banking, market-making or other financial services as are permitted under applicable laws and regulations. No part of this document may be copied or reproduced in any manner or form or redistributed or published, in whole or in part, without the prior written consent of Mirae Asset Daewoo.
Distribution United Kingdom: This report is being distributed by Mirae Asset Securities (UK) Ltd. in the United Kingdom only to (i) investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Order”), and (ii) high net worth companies and other persons to whom it may lawfully be communicated, falling within Article 49(2)(A) to (E) of the Order (all such persons together being referred to as “Relevant Persons”). This report is directed only at Relevant Persons. Any person who is not a Relevant Person should not act or rely on this report or any of its contents. United States: Mirae Asset Daewoo is not a registered broker-dealer in the United States and, therefore, is not subject to U.S. rules regarding the preparation of research reports and the independence of research analysts. This report is distributed in the U.S. by Mirae Asset Securities (USA) Inc., a member of FINRA/SIPC, to “major U.S. institutional investors” in reliance on the exemption from registration provided by Rule 15a-6(b)(4) under the U.S. Securities Exchange Act of 1934, as amended. All U.S. persons that receive this document by their acceptance hereof represent and warrant that they are a major U.S. institutional investor and have not received this report under any express or implied understanding that they will direct commission income to Mirae Asset Daewoo or its affiliates. Any U.S. recipient of this document wishing to effect a transaction in any securities discussed herein should contact and place orders with Mirae Asset Securities (USA) Inc. Mirae Asset Securities (USA) Inc. accepts responsibility for the contents of this report in the U.S., subject to the terms hereof, to the extent that it is delivered to a U.S. person other than a major U.S. institutional investor. Under no circumstances should any recipient of this research report effect any transaction to buy or sell securities or related financial instruments through Mirae Asset Daewoo. The securities described in this report may not have been registered under the U.S. Securities Act of 1933, as amended, and, in such case, may not be offered or sold in the U.S. or to U.S. persons absent registration or an applicable exemption from the registration requirements. Hong Kong: This document has been approved for distribution in Hong Kong by Mirae Asset Securities (HK) Ltd., which is regulated by the Hong Kong Securities and Futures Commission. The contents of this report have not been reviewed by any regulatory authority in Hong Kong. This report is for distribution only to professional investors within the meaning of Part I of Schedule 1 to the Securities and Futures Ordinance of Hong Kong (Cap. 571, Laws of Hong Kong) and any rules made thereunder and may not be redistributed in whole or in part in Hong Kong to any person. All Other Jurisdictions: Customers in all other countries who wish to effect a transaction in any securities referenced in this report should contact Mirae Asset Daewoo or its affiliates only if distribution to or use by such customer of this report would not violate applicable laws and regulations and not subject Mirae Asset Daewoo and its affiliates to any registration or licensing requirement within such jurisdiction.
Mirae Asset Daewoo Research 7 January 26, 2018 NAVER
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Mirae Asset Securities (USA) Inc. Mirae Asset Wealth Management (USA) Inc. Mirae Asset Wealth Management (Brazil) CCTVM 810 Seventh Avenue, 37th Floor 555 S. Flower Street, Suite 4410, Rua Funchal, 418, 18th Floor, E-Tower Building Vila New York, NY 10019 Los Angeles, California 90071 Olimpia USA USA Sao Paulo - SP 04551-060 Brasil Tel: 1-212-407-1000 Tel: 1-213-262-3807 Tel: 55-11-2789-2100
PT. Mirae Asset Sekuritas Indonesia Mirae Asset Securities (Singapore) Pte. Ltd. Mirae Asset Securities (Vietnam) LLC Equity Tower Building Lt. 50 6 Battery Road, #11-01 7F, Saigon Royal Building Sudirman Central Business District Singapore 049909 91 Pasteur St. Jl. Jend. Sudirman, Kav. 52 -53 Jakarta Selatan Republic of Singapore District 1, Ben Nghe Ward, Ho Chi Minh City 12190 Vietnam Indonesia Tel: 62-21-515-3281 Tel: 65-6671-9845 Tel: 84-8-3911-0633 (ext.110) Mirae Asset Securities Mongolia UTsK LLC Mirae Asset Investment Advisory (Beijing) Co., Ltd Beijing Representative Office #406, Blue Sky Tower, Peace Avenue 17 2401B, 24th Floor, East Tower, Twin Towers 2401A, 24th Floor, East Tower, Twin Towers 1 Khoroo, Sukhbaatar District B12 Jianguomenwai Avenue, Chaoyang District B12 Jianguomenwai Avenue, Chaoyang District Ulaanbaatar 14240 Beijing 100022 Beijing 100022 Mongolia China China
Tel: 976-7011-0806 Tel: 86-10-6567-9699 Tel: 86-10-6567-9699 (ext. 3300) Shanghai Representative Office Ho Chi Minh Representative Office 38T31, 38F, Shanghai World Financial Center 7F, Saigon Royal Building 100 Century Avenue, Pudong New Area Shanghai 91 Pasteur St. 200120 District 1, Ben Nghe Ward, Ho Chi Minh City China Vietnam
Tel: 86-21-5013-6392 Tel: 84-8-3910-7715
Mirae Asset Daewoo Research 8